By Orbex
The current USDCHF structure shows that the pair completed the actionary wave y of a cycle degree. This was followed by a cycle intervening wave x.
Judging by the structure, wave x takes the form of a bearish triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. At the time of writing, this construction is more than halfway through its completion.
Currently, bears are structuring an actionary wave Ⓩ. We can see the completion of the wave Ⓩ near the 0.893 area. At that level, cycle wave x will be at 100% along the Fibonacci lines of wave y.
After reaching this mark, the price could start an upward movement in the wave z above the maximum of 0.936.
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Let’s look at the alternative scenario that hints at a price increase. According to this, the formation of the cycle intervening wave x is fully completed. It also has the form of a triple zigzag of the primary degree.
Thus, we can make an assumption that in the last section of the chart we can see the initial part of the bullish actionary wave z of the cycle degree.
Most likely, with wave z, prices will rise above the previous maximum of 0.937, near 0.951. At that level, actionary cycle waves y and z will be equal.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
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